Bcg Matrix Tool Essay

565 WordsAug 6, 20123 Pages
Sharekia Felder-Wearing August 4, 2012 Discussion Board Week 3 MGT 680 – Strategic Management 1. The BCG matrix is a tool used in order to decide the priority that should be given to a product (Stern, 2012). The BCG matrix is made up of four parts in where the electronics are placed in the upper right quadrant which is the questions section of the quadrant. Based on this location, it is understood that the electronics are in high demand but are poor in returns due to market. If the market turns then the electronics will then be pushed over to the star section of the quadrant; however, if the market does not change, the electronics will drop to the dogs section of the quadrant. The appliances are in the cash cow section of the quadrant and are very profitable and they pay the bills in all instances. It is my opinion however, that this single method of strategizing should not be the end all decision maker for the business. In the case of BCG, the highs and lows are measured and the middle is completely overlooked. Without the medium of the business being reflected, “the true nature of the business may not be reflected” (Stern, 2012). The company should not rely totally on this method because it “is just a snapshot of the company at the time and does not give a full disclosure of all of the issues involved (David, 2011). 2. The findings based on the BCG quadrant suggest that the company is making profits off of the appliances and no profit off the electronics. The cash cow section of the quadrant can be used for more than what it is intended for, that is, the profits from the appliances can also assist in the dog and question mark areas of the quadrant (David, 2011). If after the attention and care is given to the question mark section of the matrix there is no change the best avenue at that time would be to discontinue that product and use the funding

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